Once you decide to invest in your 401K...
Dec 26 '99
It's the right thing to do! Invest for your retirement future by letting time build your wealth.
Once you have read other articles and you decided to do what is right for you... look at your employer program carefully. Not all programs are exactly the same. Here are a couple of area's your might want to focus in on:
Know your Trustee's
You might need some further clarification on a topic or may want to recommend some changes.
Know how your company's contribution to you is calculated.
If you are one who changes your percent often you might not be taking full advantage of dollar matching. Some programs spread the contribution evenly over the entire year or if you don't contribute in a pay period... they don't. If you contribute small amounts in the beginning of the year and large in the end you could come up less than you thought in the end.
Know exactly when your are contributions reach the maximum amount.
Some programs match dollars on a pay period by pay period basis. If you reach the dollar maximum too soon in the year... again you might not be able to take full advantage of the dollar match.
Get your program in writing and verify any changes you make throughout the year. Even the best HR staff makes mistakes too.
Before you borrow funds know the conditions of paying back the loan. For example, if you leave the organization you might have to repay the loan in full.
Bottom line: Contribute any much as makes sense for you as early in life as you can. Time is a wonderful thing!!
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